Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
Buildings with a puzzle pieces on top of them

Practice Management > Building Your Business > Leadership

How to Lead Your Firm When It's Being Acquired

By Scott Danner

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • Check in with your team throughout the week and provide one-on-one support to those who need it.
  • Give yourself the same grace you would extend to your team.
  • Remember to maintain perspective and focus on the bigger picture.

It’s no secret that transitions are one of the most challenging events for a financial advisory firm when being acquired. While a plethora of stressful factors come as a part of the process, there are tactics that a fiduciary leader can implement to mitigate pain points in service of a smooth transition for all.

Despite the prevailing normality of viewing acquisitions solely through a transactional lens, the approach to transitions should be rooted in something deeper — a commitment to building lasting relationships that extend far beyond the deal itself.

Even while being caught up in a whirlwind of change, it’s a team effort that ensures a successful acquisition. Effective leadership means providing unwavering team support every step of the way. Keeping the relationship at the forefront and ensuring the comfort of your team with guidance, coaching and a space for open and honest communication is paramount. Much like how we operate with a service-first mentality, we need to extend the way we serve clients to the way we interact with our team.

Check In With Your Team

A great starting point is implementing weekly check-ins to assess each team member’s mental state. Creating an open forum that is safe for employees to express themselves is key to fostering meaningful relationships and, in return, forming a stronger firm culture.

A Monday morning kickoff huddle to catch up on weekend activities helps people feel as if they are a part of something bigger and reminds them that life comes before work. Additionally, this is the perfect time for a leader to inspire and uplift the team for the week ahead.

Additionally, a business-focused call on Friday mornings can celebrate the wins and challenges of the week. As firms operate as a team, this can serve as a reminder that we’re in this together, so we can solve any challenge we may face as a team. 

While these calls are important for marking milestones and forming deeper connections, they also serve another purpose. Meeting with a team regularly allows a leader to evaluate who is engaged, and for team members showing signs of disconnection, it’s critical to schedule one-on-ones to identify what additional help they may need. 

With these personal contacts, it’s important to be direct but remain compassionate. Framing the interactions as an open and safe space helps team members feel comfortable to approach you for guidance. As a leader, you need to do everything you can to help your team out of a funk — after all, a transition is not easy to endure.

Employees’ mental health remains paramount, and it’s our job as leaders to separate the professional from the personal and guide them through both avenues. If workers need extra reassurance beyond the coaching that you can provide, connect them with an external means of support.

It’s imperative to surround yourself with people you can trust in times of uncertainty, and a strong company culture will promote that. Ultimately, leaders are only half as good as they can be without the right people by their side. There is no better feeling than knowing that you’ve aligned yourself with the right people, as it provides confidence and comfort to push past any difficulties you may encounter along the way. 

Guard Your Own Mental Health

By the same token, as a leader, you need to extend the same grace you would to your team to yourself. In the midst of a deal, it’s easy to get caught up in the minutiae. Establishing a protocol of daily morning routines and rituals that best serve your needs will build a strong mental foundation. 

Creating discipline through routine is a leader’s greatest asset, as it not only allows for a time of serenity but also allows for you to start the day with a sense of accomplishment before you even step foot in the workplace. Maintaining personal accountability toward your mental stability is crucial to operating at a high level not only at the workplace but in other aspects of life. 

And that foundation will bring the clarity that a leader needs to facilitate a smooth acquisition. Taking care of your own needs first means that you can draw on the mental capacity to take on whatever challenges you may face during a transition and, more importantly, be there for your team.

Keep It in Perspective

Manage your expectations and prioritize what matters most. Focusing on the negative is counterproductive. Instead, remember to maintain perspective and prioritize the bigger picture, as everything works itself out in the end. 

This mindset is best shared with team members to ensure that they are equipped with the skills they need to approach a transition with a clear mind. It’s a powerful feeling to establish a point of control during a challenging time, and this will serve as a platform of confidence to help your team navigate whatever may come its way.

In approaching a transition, it’s natural to have doubts and be uncertain as to how a deal will unfold. As a leader, it’s critical to preserve the sanctity of your own mental health so you can remain a pillar of support to your greater team.

Although metrics do matter, a transition expands far beyond mere numbers. Nurturing the relationships that form throughout the process is key to remaining steadfast during a time of acquisition. 

Scott Danner is CEO of Freedom Street Partners at Steward Partners.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.